How Does Cadburys Use Market Research
D1: Evaluate the market research method used by Cadbury’s
Cadburys use both primary and secondary data in there market research. The primary data they use consists of online questionnaires, surveys and social networking sites to collect relevant data. For example, asking the age of customers so that Cadburys can categorise there buyers and see what the customer needs are. For this they also use market segmentation. Cadburys also use secondary data, such as internet, reports on Cadbury and magazine articles. Cadburys also use their Face book page to promote products, update competitions and overall keep in touch with their customers, sharing opinions, reviews and experiences.
How appropriate or successful the market research methods have been in terms of:
Cost efficiency: …show more content…
Now that the internet is mainly used for several things, Cadburys can now make use of the internet as a way to get through to their customers.
For example, Cadburys have online questionnaires and Face book which are relatively cheap and get sent out to a mass audience thus being a successful technique to use. For example, the cost of having a banner or an ad on another website such as Yahoo would be much more expensive; or the use of getting workers to stand in areas and talk to people. Online questionnaires gather primary data, which can be qualitative and quantitative data, thus being a valid source to draw conclusions upon. Cadburys recently had a campaign called the Gorilla advertisement, which was a television advert and was very popular with the audience and won many awards. I think that this was a successful marketing strategy because it was clever. Although this would have been very expensive, it was a gamble for Cadburys to take as adverts are expensive and do not always pay off. It means that Cadburys have to trust the advertising campaign and the people working on the
project.
Fitness for purpose:
Cadbury Eggs are a popular dessert and treat that shoot onto shelves around Easter every year and are very popular.
Cadburys over emphasise responsibility ethically and environmentally. Their relationship with Ghana farmers promote fair wages and support the country’s economy. Therefore, the chocolate is now fair trade.
Time:
Cadbury’s is a marketing focused company and its success relies on satisfying the needs of its consumers. Cadbury seeks to create new products, build on existing core brands and find new ways to add value to existing products. A key marketing objective for large business organization is to focus on the most profitable opportunities in global markets in their particular product category. This can take the form of value or volume or a mix of both and can be seen in all forms of mass consumption products from shampoo and toothpaste, to baked beans, confectionery and beverages.
Accuracy:
Referring back to cost efficient, I think that Cadburys has been accurate and successful with their Gorilla advertisement. It has since gone on to appear in a number of other countries. However, Cadburys changed the shape of their product from a square shape to a circular shape, and the bar has gone smaller in quantity; from 49g to 45g. Customers were frustrated that the bar had gone smaller but the price remained the same and customers said that ‘they want Cadburys to be honest’
Response rate:
In 2007, Cadburys produced an advert called ‘Gorilla’. It was very popular and won advertising awards. After this, sales increased for Cadburys and after this they produced another advert which has the famous song by Queen which was also very popular. However this was a short term success as Cadburys are only significantly better then there competitors during the Easter time due to their crème eggs. Therefore, Cadburys need to send out surveys asking customers when they are most likely to buy the product and why that is. Cadburys could see what their competitors are doing and not doing so that they can compete with them and maximise profit.
The disadvantages of the market research methods used by Cadburys:
Personal Interviews:
Personal interviews take up a lot of time, are expensive and gather a lot of qualitative data which makes it hard for conclusions to be made. If Cadburys collect data using personal interviews, they will gather a lot of thoughts and opinions which could be good but it does not make them reliable as people’s opinions differ and what one person might like, another may not. For example, if Cadburys used personal interviews and asked what their favourite flavour could be, it could mean that if Cadburys used this research, they would end up making hundreds of different flavoured chocolate catering to only a minority of customers.
Surveys:
If the survey is done through the post, it is cheaper and time efficient, however the response rate could be low as it wouldn’t be compulsory for people to fill out a Cadburys survey. If a questionnaire was to be sent out the results collected would be valid but if the response rate is low, Cadburys cannot make informed decisions. If the survey was sent out online through email or Face book it could be sent to many more people, but as Face book allows people to write their thoughts and opinions, it could be time consuming for Cadburys and if it was sent out on email, most people might see it as junk mail and might not want to do it. This is why companies give incentives. For example, if they fill out the questionnaire then they can win £100. Therefore, surveys would not be a good research method to use.
Focus groups:
Focus groups are usually done in small groups so would need a lot of volunteers. It could be a disadvantage as people might be pressured into answering questions or agree with something that they do not agree with just because the majority are. If the focus group is done in an unfamiliar setting, then people may feel uncomfortable and will not answer the best according to their ability. It would be very expensive and might not collect enough valid data as they could. For instance, if the interviewer asks a question, the discussion might go off topic or they may not get the answer they were looking for. Therefore this type of research method could be a waste of time.
Internal and external source:
An internal source could be sales figures. However this does not give any solutions. For examples, it states facts but Cadburys might not know what to do with them. For example, if the profit was higher in April then it is in January the source shows this but does not tell Cadburys what to do. An external source could be government statistics about consumer’s leisure time, occupation but this could only tell Cadburys what sort of research they could use but not what to ask. From this Cadburys will not know who their target audience is.
Qualitative and quantitative research:
Qualitative and quantitative give valid conclusions but qualitative data is subjective and researcher bias is unavoidable. Quantitative data might not be suitable as the data is limited. The research is carried out in an unnatural environment.
Include your opinion and conclude:
In my opinion, if Cadburys was to use product development for their product it could possibly be successful. Also it is clear if Cadburys was to use diversification and aim a new product there would be a high chance of success as long as the product was to meet customer needs which can be done through market research to help gather an idea of people who regularly purchase their product.
To conclude, I think Cadburys still have to carry out market research because they are not popular all year round so they are not consistent.
Cadburys use both primary and secondary data in there market research. The primary data they use consists of online questionnaires, surveys and social networking sites to collect relevant data. For example, asking the age of customers so that Cadburys can categorise there buyers and see what the customer needs are. For this they also use market segmentation. Cadburys also use secondary data, such as internet, reports on Cadbury and magazine articles. Cadburys also use their Face book page to promote products, update competitions and overall keep in touch with their customers, sharing opinions, reviews and experiences.
How appropriate or successful the market research methods have been in terms of:
Cost efficiency: …show more content…
Now that the internet is mainly used for several things, Cadburys can now make use of the internet as a way to get through to their customers.
For example, Cadburys have online questionnaires and Face book which are relatively cheap and get sent out to a mass audience thus being a successful technique to use. For example, the cost of having a banner or an ad on another website such as Yahoo would be much more expensive; or the use of getting workers to stand in areas and talk to people. Online questionnaires gather primary data, which can be qualitative and quantitative data, thus being a valid source to draw conclusions upon. Cadburys recently had a campaign called the Gorilla advertisement, which was a television advert and was very popular with the audience and won many awards. I think that this was a successful marketing strategy because it was clever. Although this would have been very expensive, it was a gamble for Cadburys to take as adverts are expensive and do not always pay off. It means that Cadburys have to trust the advertising campaign and the people working on the
project.
Fitness for purpose:
Cadbury Eggs are a popular dessert and treat that shoot onto shelves around Easter every year and are very popular.
Cadburys over emphasise responsibility ethically and environmentally. Their relationship with Ghana farmers promote fair wages and support the country’s economy. Therefore, the chocolate is now fair trade.
Time:
Cadbury’s is a marketing focused company and its success relies on satisfying the needs of its consumers. Cadbury seeks to create new products, build on existing core brands and find new ways to add value to existing products. A key marketing objective for large business organization is to focus on the most profitable opportunities in global markets in their particular product category. This can take the form of value or volume or a mix of both and can be seen in all forms of mass consumption products from shampoo and toothpaste, to baked beans, confectionery and beverages.
Accuracy:
Referring back to cost efficient, I think that Cadburys has been accurate and successful with their Gorilla advertisement. It has since gone on to appear in a number of other countries. However, Cadburys changed the shape of their product from a square shape to a circular shape, and the bar has gone smaller in quantity; from 49g to 45g. Customers were frustrated that the bar had gone smaller but the price remained the same and customers said that ‘they want Cadburys to be honest’
Response rate:
In 2007, Cadburys produced an advert called ‘Gorilla’. It was very popular and won advertising awards. After this, sales increased for Cadburys and after this they produced another advert which has the famous song by Queen which was also very popular. However this was a short term success as Cadburys are only significantly better then there competitors during the Easter time due to their crème eggs. Therefore, Cadburys need to send out surveys asking customers when they are most likely to buy the product and why that is. Cadburys could see what their competitors are doing and not doing so that they can compete with them and maximise profit.
The disadvantages of the market research methods used by Cadburys:
Personal Interviews:
Personal interviews take up a lot of time, are expensive and gather a lot of qualitative data which makes it hard for conclusions to be made. If Cadburys collect data using personal interviews, they will gather a lot of thoughts and opinions which could be good but it does not make them reliable as people’s opinions differ and what one person might like, another may not. For example, if Cadburys used personal interviews and asked what their favourite flavour could be, it could mean that if Cadburys used this research, they would end up making hundreds of different flavoured chocolate catering to only a minority of customers.
Surveys:
If the survey is done through the post, it is cheaper and time efficient, however the response rate could be low as it wouldn’t be compulsory for people to fill out a Cadburys survey. If a questionnaire was to be sent out the results collected would be valid but if the response rate is low, Cadburys cannot make informed decisions. If the survey was sent out online through email or Face book it could be sent to many more people, but as Face book allows people to write their thoughts and opinions, it could be time consuming for Cadburys and if it was sent out on email, most people might see it as junk mail and might not want to do it. This is why companies give incentives. For example, if they fill out the questionnaire then they can win £100. Therefore, surveys would not be a good research method to use.
Focus groups:
Focus groups are usually done in small groups so would need a lot of volunteers. It could be a disadvantage as people might be pressured into answering questions or agree with something that they do not agree with just because the majority are. If the focus group is done in an unfamiliar setting, then people may feel uncomfortable and will not answer the best according to their ability. It would be very expensive and might not collect enough valid data as they could. For instance, if the interviewer asks a question, the discussion might go off topic or they may not get the answer they were looking for. Therefore this type of research method could be a waste of time.
Internal and external source:
An internal source could be sales figures. However this does not give any solutions. For examples, it states facts but Cadburys might not know what to do with them. For example, if the profit was higher in April then it is in January the source shows this but does not tell Cadburys what to do. An external source could be government statistics about consumer’s leisure time, occupation but this could only tell Cadburys what sort of research they could use but not what to ask. From this Cadburys will not know who their target audience is.
Qualitative and quantitative research:
Qualitative and quantitative give valid conclusions but qualitative data is subjective and researcher bias is unavoidable. Quantitative data might not be suitable as the data is limited. The research is carried out in an unnatural environment.
Include your opinion and conclude:
In my opinion, if Cadburys was to use product development for their product it could possibly be successful. Also it is clear if Cadburys was to use diversification and aim a new product there would be a high chance of success as long as the product was to meet customer needs which can be done through market research to help gather an idea of people who regularly purchase their product.
To conclude, I think Cadburys still have to carry out market research because they are not popular all year round so they are not consistent.